In today's technical analysis, all eyes are on the S&P 500—an index taking a heavy hit in the wake of the newly announced reciprocal tariffs. The technical setup here perfectly aligns with the recent fundamental turbulence, making it one of the most interesting charts to watch right now.
Over the past few weeks, the S&P 500 has respected a clearly defined support zone: the psychological barrier of 5500 points, marked with orange on the chart. This level was tested twice—first on March 13th and again on March 31st. Both times, the index bounced, validating it as a key support.
However, bearish pressure is clearly mounting. A red downtrend line, formed from the series of lower highs in recent sessions, is acting as immediate resistance. This suggests that sellers are gaining confidence, particularly amid the uncertainty fueled by the tariff news.
At the moment, the S&P 500 is testing the critical 5500-point support once again. The outcome of this battle will likely define the next major move. A daily close below this orange support would trigger a strong midterm sell signal, potentially opening the path to deeper declines. On the other hand, a V-shaped recovery and a close back above this level would offer some relief for bulls, potentially setting up a rebound toward the red downtrend line.
The stakes are high—and today’s price action could set the tone for the next phase in the market.